City of Atlanta v. SOUTHERN STATES POLICE BENEVOLENT ASS'N

623 S.E.2d 557, 276 Ga. App. 446, 2005 Fulton County D. Rep. 3628, 178 L.R.R.M. (BNA) 3015, 2005 Ga. App. LEXIS 1282
CourtCourt of Appeals of Georgia
DecidedNovember 18, 2005
DocketA05A1131
StatusPublished
Cited by10 cases

This text of 623 S.E.2d 557 (City of Atlanta v. SOUTHERN STATES POLICE BENEVOLENT ASS'N) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Atlanta v. SOUTHERN STATES POLICE BENEVOLENT ASS'N, 623 S.E.2d 557, 276 Ga. App. 446, 2005 Fulton County D. Rep. 3628, 178 L.R.R.M. (BNA) 3015, 2005 Ga. App. LEXIS 1282 (Ga. Ct. App. 2005).

Opinion

Bernes, Judge.

This is an appeal from the trial court’s order granting partial summary judgment to the plaintiffs on their claims for declaratory and permanent injunctive relief pertaining to three City of Atlanta defined benefit pension plans. The three pension plans are the Fire Fighters Pension Fund, which covers firefighters employed by the City of Atlanta; the Police Officers Pension Fund, which covers police *447 officers employed by the City of Atlanta; and the General Employees Pension Fund, which covers employees of the City of Atlanta and the Atlanta Board of Education (collectively, the “City of Atlanta Pension Funds”). After entertaining cross-motions for summary judgment, the trial court ruled that the board of trustees for each of the three City of Atlanta Pension Funds have the exclusive authority to hire a third-party administrator to handle the administration of pension benefit payments and to obtain advice from independent legal counsel on matters regarding their authority and duties. The trial court also permanently enjoined the City of Atlanta and other defendants 1 from interfering with the decisions on these matters made by the board of trustees for the Fire Fighters Pension Fund and Police Officers Pension Fund. The City of Atlanta now appeals. For the reasons set forth below, we affirm.

The essential facts are notin dispute. Separate boards of trustees administer the three City of Atlanta Pension Funds. Each board includes an appointee of the Mayor of the City of Atlanta, the Chief Financial Officer of the City of Atlanta, a City Council member, and ' members elected from active and retired employees.

Unhappy with the City of Atlanta’s administration of the pension funds, the boards of trustees of the Fire Fighters Pension Fund and Police Officers Pension Fund adopted resolutions to hire a third-party administrator to perform benefit administration services for the respective pension plans. On January 30, 2003, both boards signed agreements with Administrative Services, Inc. (“ASI”) for this purpose. 2

On February 17, 2003, the Atlanta City Council adopted an ordinance entitled “An Ordinance To Amend The City of Atlanta Pension Laws (General, Police and Fire)____” The ordinance provided in part:

Any contract entered into by the Board of Trustees on or after January 1, 2003 which affects the administrative staffing, management, or operation of the pension fund shall *448 require the consent of the City by adoption of a Resolution and approval by the Mayor. Any such contract which does not comply with the requirements of this Ordinance shall be null and void.

Subsequently, the City Attorney sent letters to the board chairpersons for the Fire Fighters Pension Fund and Police Officers Pension Fund advising them that it had come to the City Attorney’s attention that both boards had voted to hire outside legal counsel to advise them on pension matters. The letters took the position that the City Attorney had sole authority to render legal advice to the pension boards and sole authority to determine if there was any conflict of interest in doing so. The letters further advised that “the Board[s] [are] not authorized to engage the services of outside counsel” unless and until the matter had been discussed and authorized by the City of Atlanta Law Department.

In response to requests from the boards of the Fire Fighters Pension Fund and Police Officers Pension Fund, the City Attorney issued a memorandum dated July 15, 2003 rendering an additional' legal opinion concerning the hiring of a third-party administrator and outside legal counsel. The City Attorney acknowledged that the City Council, through its February 17 ordinance, could not retroactively invalidate a lawful contractual obligation entered into by the pension funds with ASI. However, the City Attorney ultimately concluded that any deficiency in the February 17 ordinance was irrelevant because the pension boards lacked authority to independently contract with a third-party administrator in the first instance, thus rendering the boards’ actions ultra vires and making the respective signed agreements between the pension boards andÁSI null and void from their inception. Additionally, the City Attorney reiterated her conclusion that neither pension board had authority to hire independent legal counsel without prior consultation and approval from the City of Atlanta Law Department.

Plaintiffs commenced this action on December 19, 2003. The plaintiffs in this case are not the respective pension boards themselves. Rather, plaintiffs include participants in the three City of Atlanta Pension Funds, elected members from each of the three pension boards, and three organizations that advocate for the interests of current and future participants in the City of Atlanta Pension Funds. They sought a declaratory judgment clarifying that, among other things, the three pension boards had authority under Georgia law to independently contract for third-party administrators to administer benefit services and to hire outside legal counsel without interference from the City of Atlanta. Plaintiffs also requested an *449 interlocutory and permanent injunction restraining the City of Atlanta from interfering or preventing the pension boards from hiring a third-party administrator and outside legal counsel. 3

The City of Atlanta timely answered. Thereafter, the parties filed cross-motions for summary judgment. Plaintiffs sought partial summary judgment on their claims for declaratory judgment and a permanent injunction regarding the hiring of a third-party administrator and outside legal counsel, while the City sought summary judgment on all claims. After oral argument and full briefing from the parties, the trial court denied the City of Atlanta’s summary judgment motion and granted the plaintiffs’ motion for partial summary judgment. The trial court issued a declaratory judgment and permanently enjoined the City of Atlanta from interfering with decisions on these matters made by the respective pension boards for the Fire Fighters Pension Fund and Police Officers Pension Fund. 4

On appeal, the City of Atlanta asserts multiple grounds for why the trial court erred in granting plaintiffs’ motion for partial summary judgment. The City claims that: (1) plaintiffs lack standing to bring this suit; (2) there is no actual or justiciable controversy warranting the entry of a declaratory judgment; (3) the pension boards have no independent authority to contract for a third-party administrator or to hire outside legal counsel; (4) there is no evidence in the record and a lack of sufficient findings of fact and conclusions of law to support entry of a permanent injunction; and (5) the permanent injunction lacked the requisite specificity required by OCGA § 9-11-65 (d). We will address each claim of error in turn.

1. The City of Atlanta argues that plaintiffs lack standing to bring their claims for permanent injunctive relief and declaratory relief.

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Bluebook (online)
623 S.E.2d 557, 276 Ga. App. 446, 2005 Fulton County D. Rep. 3628, 178 L.R.R.M. (BNA) 3015, 2005 Ga. App. LEXIS 1282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-atlanta-v-southern-states-police-benevolent-assn-gactapp-2005.